BILL NUMBER: SB 1230	CHAPTERED  07/28/99

	CHAPTER   215
	FILED WITH SECRETARY OF STATE   JULY 28, 1999
	APPROVED BY GOVERNOR   JULY 27, 1999
	PASSED THE SENATE   JULY 15, 1999
	PASSED THE ASSEMBLY   JULY 6, 1999
	AMENDED IN ASSEMBLY   JULY 1, 1999
	AMENDED IN ASSEMBLY   JUNE 16, 1999
	AMENDED IN ASSEMBLY   JUNE 8, 1999

INTRODUCED BY   Senator Burton
   (Principal coauthors:  Assembly Members Migden and Torlakson)


                        FEBRUARY 26, 1999

   An act to add and repeal Article 9.5 (commencing with Section
18805) of Chapter 3 of Part 10.2 of Division 2 of the Revenue and
Taxation Code, relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1230, Burton.  Income taxes:  designations:  California Peace
Officer Memorial Foundation.
   Under existing income tax laws, taxpayers are allowed to
contribute amounts in excess of their tax liability for the support
of specified funds.
   This bill would additionally allow taxpayers to designate on their
tax returns that a specified amount in excess of their tax liability
be transferred to the California Peace Officer Memorial Foundation
Fund, which would be created by this bill.  It would require money in
that fund, upon appropriation by the Legislature, to be allocated to
the California Peace Officer Foundation for the building and
maintaining of a memorial to California peace officers as specified.

   The bill would require the Franchise Tax Board to revise the form
of tax returns to provide for the designation and would allow, upon
appropriation by the Legislature, the Franchise Tax Board and the
Controller to receive a portion of the funds designated to cover
costs incurred in collecting and administering the funds.
   The bill would provide that these provisions shall remain in
effect only until January 1, 2006, unless a later enacted statute
enacted before January 1, 2006, deletes that date.  However, the bill
would also provide that these provisions are deleted for taxable
years beginning on or after January 1 of the calendar year in which
the Franchise Tax Board estimates by September 1 that the
contributions made on returns filed in that calendar year will be
less than $250,000.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Article 9.5 (commencing with Section 18805) is added to
Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation
Code, to read:

      Article 9.5.  Designations to the California Peace Officer
Memorial Foundation Fund

   18805.  (a) Any taxpayer may designate on the tax return that a
contribution in excess of the tax liability, if any, be made to the
California Peace Officer Memorial Foundation Fund, which is
established by Section 18806.  That designation is to be used as a
voluntary checkoff on the tax return.
   (b) The contributions shall be in full dollar amounts and may be
made individually by each signatory on the joint return.
   (c) A designation shall be made for any taxable year on the
initial return for that taxable year, and once made shall be
irrevocable.  In the event that payments and credits reported on the
return, together with any other credits associated with the taxpayer'
s account, do not exceed the taxpayer's liability, the return shall
be treated as though no designation has been made.  In the event that
no designee is specified, the contribution shall be transferred to
the General Fund, after reimbursement of the direct actual costs of
the Franchise Tax Board for the collection and the administration of
funds under this article.
   (d) In the event a taxpayer designates a contribution to more than
one account or fund listed on the tax return, and the amount
available for designation is insufficient to satisfy the total amount
designated, the contribution shall be allocated among the designees
on a pro rata basis.
   (e) The Franchise Tax Board shall revise the forms of the return
to include a space labeled the "California Peace Officer Memorial
Foundation Fund" to allow for the designation permitted.  The forms
shall also include in the instructions information that the
contribution may be in the amount of one dollar ($1) or more and that
the contribution shall be used to build and maintain the California
Peace Officer Memorial in Sacramento, California, and for activities
performed by the California Peace Officer Memorial Foundation in
support of families of slain peace officers.
   (f) A deduction shall be allowed under Article 6 (commencing with
Section 17201) of Chapter 3 for any contribution made pursuant to
subdivision (a).
   18806.  There is in the State Treasury the California Peace
Officer Memorial Foundation Fund to receive contributions made
pursuant to Section 18805.  The Franchise Tax Board shall notify the
Controller of both the amount of money paid by taxpayers in excess of
their tax liability and the amount of refund money which taxpayers
have designated pursuant to Section 18805 to be transferred to the
California Peace Officer Memorial Foundation Fund.  The Controller
shall transfer from the Personal Income Tax Fund to the California
Peace Officer Memorial Foundation Fund an amount not in excess of the
sum of the amounts designated by individuals pursuant to Section
18805 for payment into that fund.  It is the intent of the
Legislature that the tax return for the 1999 taxable year include a
space for the California Peace Officer Memorial Foundation Fund.
   18807.  All money transferred to the California Foundation
Memorial Foundation Fund, upon appropriation by the Legislature,
shall be allocated as follows:
   (a) To the Franchise Tax Board and the Controller for
reimbursement of all costs incurred by the Franchise Tax Board and
the Controller in connection with their duties under this article.
   (b) To the California Peace Officer Memorial Commission for
building and maintaining the California Peace Officer Memorial in
Sacramento, California, and for activities performed by the
California Peace Officer Memorial Foundation in support of families
of slain peace officers.
   18808.  (a) This article shall remain in effect only until January
1, 2006, and as of that date is repealed, unless a later enacted
statute, which is enacted before January 1, 2006, deletes that date.

   (b) If, in any calendar year the Franchise Tax Board estimates by
September 1 that contributions described in this article made on
returns filed in that calendar year will be less than two hundred
fifty thousand dollars ($250,000), or the adjusted amount specified
in subdivision (c), as may be applicable, then this article is
repealed with respect to taxable years beginning on and after January
1 of that calendar year.  The Franchise Tax Board shall estimate the
annual contribution amount by September 1 of each year using the
actual amounts known to be contributed and an estimate of the
remaining year's contributions.
   (c) For each calendar year, beginning with calendar year 2001, the
Franchise Tax Board shall adjust, on or before September 1 of that
calendar year, the minimum estimated contribution amount specified in
subdivision (b) as follows:
   (1) The minimum estimated contribution amount for the calendar
year shall be an amount equal to the product of the minimum estimated
contribution amount for the prior September 1 multiplied by the
inflation factor adjustment as specified in paragraph (2) of
subdivision (h) of Section 17041, rounded off to the nearest dollar.

   (2) The inflation factor adjustment used for the calendar year
shall be based on the figures for the percentage change in the
California Consumer Price Index received on or before August 1 of the
calendar year pursuant to paragraph (1) of subdivision (h) of
Section 17041.
   (d) Notwithstanding the repeal of this article, any contribution
amounts designated pursuant to this article prior to its repeal shall
continue to be transferred and disbursed in accordance with this
article as in effect immediately prior to that repeal.
